New York jury convicts two IcomTech crypto ‘Ponzi’ promoters

New York jury convicts two IcomTech crypto 'Ponzi' promoters


A New York jury has convicted two former promoters of crypto mining and trading firm IcomTech of wire fraud conspiracy – both now facing 20-year sentences for their roles in the “Ponzi” scheme.

On March 14, New York District Court Judge David Brand and Gustavo Rodriguez each pleaded guilty to conspiracy to commit wire fraud, ending a two-week trial.

In a March 15 press release from the US Attorney's Office in the Southern District of New York, IcomTech founder David Carmona hired Rodriguez in mid-2018 for his newly launched IctomTech, which describes itself as a crypto mining and trading company.

Source: US Attorney SDNY on X

Carmona, Brand and others told Atomtech investors that the company's crypto trading and mining would guarantee daily income.

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However, prosecutors said the company wasn't actually trading or issuing crypto — instead, it was a “Ponzi” scheme that used investors' money to pay other investors.

Rodriguez advised on the pricing of “investment packages” and false daily returns that investors could access through the site and the portal it maintains.

Brand and other promoters of the scheme “in some cases took hundreds of thousands of dollars in money from victims,” ​​the US Attorney's Office said.

The looted funds were used to buy real estate, travel and host “fixed expos and small community presentations,” while promoters appeared “in expensive cars and luxurious clothes” and promised many investors “financial freedom.”

IcomTech investors saw their fake profits increase on the portal but could not withdraw and were subjected to “excuses, delays and hidden fees”. As complaints are increasing, IcomTech has introduced a token called “Icoms” to collect more money on claims accepted by companies in payments.

In 2019, IcomTech collapsed and stopped making payments, leaving Icoms “essentially worthless” and incurring further losses.

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U.S. Attorney for the Southern District of New York, Damian Williams, said the scheme “swindled tens of thousands of people out of millions of dollars” and “swindled hard-working people out of their hard-earned money.”

“Because of their lies to hard-working people, Brand and Rodriguez face federal criminal charges and significant prison terms,” ​​he added.

Brandt is scheduled to be sentenced on June 27, and Rodriguez is scheduled to be sentenced the following day, June 28.

Marco Ochoa, the former CEO of IcomTech, was sentenced to five years in prison in January.

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